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TrueLTV enables issuers, investors, insurers, servicers, credit risk managers, mortgage researchers, and whole loan traders to identify, evaluate, and monitor the impact of HELOCs and other second-mortgage liens on the value of active first-mortgage pools and portfolios.
Thanks to current out-of-date reporting standards, HELOCs and other secondary liens have been permitted to increase mortgage portfolios’ loan-to-value (LTV) and combined loan-to-value (CLTV) ratios—effectively lowering their overall value—without revealing these fundamental factual alterations to portfolio issuers, investors, or anyone else.
According to LoanPerformance data, from 23 to 53 percent of first-mortgage borrowers now add seconds, thirds, or more within two or three years of issuance. While providing a happy new source of liquidity for homeowners, this spike in added encumbrances has become a growing problem for anyone dealing with mortgages in pools or portfolios—since the actual LTV/CLTV ratios may differ significantly from those indicated for the first mortgages alone. Needless to say, such decreases in value can lead to substantial increases in risk.
TrueLTV updates portfolio LTV/CLTV reporting standards by identifying all subordinate liens affecting the value of first mortgages. This information, which itself can be updated regularly, enables you to determine accurately the actual current risk associated with a pool or portfolio (more about product).
To learn more about TrueLTV, please send us an email or give us a call at the appropriate number for your geographic area.
 
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